Offshore staff
(Brazil)-British Gas has announced that drilling will commence next week on the BMS-13 exploration block in the Santos Basin, off the coast of Brazil's Sao Paulo state.
This announcement comes after a period of increased investment by BG in the region. It now holds 14 Brazilian exploration blocks, of which eight are in the Santos Basin and six are in the Sao Francisco Basin. BG currently has no oil or gas production in Brazil.
Ten of these blocks were awarded during October's government E&P auctions. BG pledged to invest $250 million in these blocks, which it won in joint bids with Petrobras and Spanish energy company Repsol-YPF.
BG spent $130 million to buy participation in the 10 new blocks during the auction. Among these blocks, BG won operating rights and is a 50% partner with Repsol-YPF in two blocks in shallow waters in the Santos Basin. These two blocks were auctioned at a combined price of $74 million.
BG also holds a 40% stake in a deepwater block in the Santos Basin, with Petrobras holding the other 60% as lead operator. This block, the most expensive single block in the auction at $74 million, will yield 12 MMcm/d of natural gas when production starts in 2008.
12/06/2005
